iRobot, the creator of the Roomba and the company that popularized robot vacuums in the first place, told investors on Wednesday that it has “substantial doubt about [its] ability to continue.”
Beyond declining sales — the company reported that revenue decreased 47 percent in the US over the prior year in its fourth quarter earnings — iRobot is also struggling to pay off its debts. The company took on a $200 million bridge loan to stay afloat while it waited for its $1.7 billion acquisition deal with Amazon to be approved, which it’s still paying off.
The European Commission ultimately investigated the acquisition in 2023, and rather than address its concerns, Amazon terminated the deal and paid out its $94 million termination fee. That wasn’t enough to eliminate iRobot’s problems, though. The company now plans to review its options and see if it can find another way to stick it out, including “refinancing the company’s debt and exploring a potential sale or strategic transaction.”
The timing is particularly unfortunate given the line of new robot vacuums iRobot recently announced. The company has a new robot for most price points, but the Roomba 105 Vac Robot series, which are supposed to feature 70 times more suction than past models, and the Roomba Plus 505 Combo Robot + AutoWash Dock, which is able to clean corners better and has a dock that washes and heat-dries the robot’s mop, stand out as notable improvements. The company is also adopting lidar sensors across the board, something that was missing from previous robots and should allow for better, more accurate mapping.
It’s possible new products help iRobot get to a better place financially — the company still makes robots we recommend, after all — but that doesn’t change the fact that its facing stiff competition from companies like Roborock and Dreame, who are both getting much more adventurous with what their robot vacuums can actually do.
